Persian Gulf shares fall, Qatari shares climb
Monday, 15 December 2008
Persian Gulf shares declined Sunday, led by Al-Rajhi Bank and Emirates NBD PJSC on speculation fourth-quarter earnings at banks will be affected by the global financial crisis. Qatari stocks advanced for a fifth day, reports Bloomberg.
Al-Rajhi Bank, the largest bank by market value in Saudi Arabia, fell for the first time this week. Emirates NBD posted the biggest drop in December so far. Shuaa Capital PSC, the United Arab Emirates' biggest investment bank, sank after saying it will cut its workforce.
Saudi Arabia's Tadawul All Share Index lost 1.20 per cent to 4,789.19 at 2:19pm in Riyadh. The Dubai Financial Market General Index declined 1.30 per cent and the Abu Dhabi Securities Exchange General Index fell 0.90 per cent.
"There is still negative sentiment in the market as we are still hearing bad news, although it is better than in October and November," said Sherif Abdel-Khalek, regional sales executive at Beltone Securities Brokerage in Dubai. "Most institutions are sitting on the sidelines and waiting for the fourth-quarter results and the impact the financial crisis has had on banks and real estate."
Financial firms worldwide have racked up almost US$1.0 trillion in credit losses and writedowns following the collapse of the US subprime-mortgage market. While banks in the Gulf have largely sidestepped losses, they have been affected by tighter access to funding.
Al-Rajhi Bank, the largest bank by market value in Saudi Arabia, fell for the first time this week. Emirates NBD posted the biggest drop in December so far. Shuaa Capital PSC, the United Arab Emirates' biggest investment bank, sank after saying it will cut its workforce.
Saudi Arabia's Tadawul All Share Index lost 1.20 per cent to 4,789.19 at 2:19pm in Riyadh. The Dubai Financial Market General Index declined 1.30 per cent and the Abu Dhabi Securities Exchange General Index fell 0.90 per cent.
"There is still negative sentiment in the market as we are still hearing bad news, although it is better than in October and November," said Sherif Abdel-Khalek, regional sales executive at Beltone Securities Brokerage in Dubai. "Most institutions are sitting on the sidelines and waiting for the fourth-quarter results and the impact the financial crisis has had on banks and real estate."
Financial firms worldwide have racked up almost US$1.0 trillion in credit losses and writedowns following the collapse of the US subprime-mortgage market. While banks in the Gulf have largely sidestepped losses, they have been affected by tighter access to funding.